Wall Street ended Monday, July 13, 2026, in negative territory amid heightened geopolitical tensions following former U.S. President Donald Trump’s announcement on Iranian shipping in the Strait of Hormuz. His statement reignited concerns about further escalation in the Middle East and rising energy costs.
Trump Announces Naval Blockade and ‘Guardian’ Role
Trump announced the reinstatement of a naval blockade targeting Iranian vessels, asserting that the measure would prevent Iranian ships—and those of Tehran’s clients—from entering or exiting the strategically vital Strait of Hormuz. He also declared that the United States would assume the role of ‘guardian’ of the waterway, demanding a 20% fee on the value of all cargo passing through to cover security and maritime protection costs.
Markets React Sharply
The S&P 500 fell 0.78%, while the tech-heavy Nasdaq dropped more sharply—1.55%. The Dow Jones Industrial Average fared slightly better, slipping 138 points—or 0.26%—as investors weighed the implications for global trade and energy supply chains.
Oil Prices Surge
Crude oil prices spiked immediately. U.S. West Texas Intermediate (WTI) futures rose over 5%, breaking above $75 per barrel. Brent crude jumped 5.3%, nearing $80 per barrel. The Strait of Hormuz handles roughly 20% of the world’s seaborne oil exports, making any disruption a major catalyst for price volatility.
Escalation Follows Weekend Airstrikes
The latest tensions follow a weekend exchange of aerial strikes between the U.S. and Iran. Tehran struck U.S. facilities in Gulf countries and claimed it had closed the Strait of Hormuz—a claim Trump dismissed, insisting commercial shipping remained uninterrupted.
Semiconductor Stocks Hit Hard
Semiconductor companies bore the brunt of the sell-off. SK Hynix’s U.S.-listed shares plunged nearly 7%—reversing much of its 13% gain from its Nasdaq debut. Micron Technology fell 6%, SanDisk dropped 10%, and Seagate Technology declined 6%. Advanced Micro Devices (AMD) and Intel each lost around 4%.
Banks Also Under Pressure
Major U.S. banks—including JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and Wells Fargo—also declined, ahead of upcoming quarterly earnings reports. Analysts expect S&P 500 corporate profits for Q2 2026 to have risen over 23% year-on-year. A key market test will be whether AI-related investments continue to sustain profitability across the technology sector.